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According to the latest forecasts out from ZenithOptimedia, Global ad spend is on track to grow 5.5% this year to $537 billion, while Internet advertising will account for nearly one-quarter of that, at $121 billion.
If there was ever any doubt as to where people are spending most of their time these days, this latest information will certainly put out that fire. In fact, Zenith goes on to predict that Internet display will almost certainly take over paid search at $74.4 billion versus $71.1 billion by 2015. This could spell trouble for companies like Google, who have traditionally dominated the Internet ad space in the past.
Keeping an Eye on Mobile Ad Spend
As Ingrid Lunden over at TechCrunch recaps, all eyes are now turning to mobile as mobile continues to experience rapid growth. This makes sense as more people are using mobile devices to access information on the Internet, from tablets to smartphones to other types of portable devices. Compare the following as case and point:
In 2013, $13.4 billion was spent on mobile ads, but by 2016 that will rise to $45 billion, or 28% of Internet ad spend and 7.6% of total ad investments.
Researchers at Zenith stated,
“Mobile will leapfrog radio, magazines and outdoor to become the world’s fourth-largest medium by the end of our forecast period..”
The Rise of Social Media Advertising
Even more impressive is the rise of social media advertising, which is currently growing at 29% each year.
Why is this?
As mentioned earlier, social media is HUGE. If you don’t have at least a Twitter account and a Facebook account, then you simply don’t get it. Consider the social media giant, Facebook, which currently has more than 1 billion users and is on pace to soon cross the 1 billion mark on just mobile alone! The advertising potential is limitless.
2- Rise of Ad Tech
Perhaps even more poignant is the rise of Ad Tech. Why? Ad Tech allows businesses to gain more control over what they buy and where it’s being seen. “It also provides a greater amount of data to be able to measure the impact that their marketing investments are having.”
Finally, when it comes to world comparisons of Ad Spend and advertising in general, the U.S. remains the biggest market for advertising, at more than three times the value compared to the next-biggest market.
Bottom line? It’s time to start thinking through some new online social strategies and thinking of new ways to engage the countless users who log in each day to social sites. How can you capitalize on that potential?